In stories like this, try first to remember that Facebook isn't a single entity with a single set of opinions, but rather a huge collection of people who came to the company at different times and different points in their career. Alex Stamos is a good person† who has been doing vulnerability research since the 1990s. He's built a reputation for understanding and defending vulnerability researchers. He hasn't been at…
Coming from a pentesting background (and now working as a CISO), I can see both sides to this. tptacek is almost certainly correct in his characterization of the events, and I agree wholeheartedly with what he's said. It's important to note that this researcher didn't just chain several exploits together, but sat on sensitive data unbeknownst to Facebook in order to exploit other vulnerabilities later. Those vulnerab…
Why did those credentials still work post-report?
What if those credentials were accessed from a public dump?
The outcome of this entire clusterfuck of a bounty is one of the reasons there are still very well paid blackhats. There are no rules or terms to follow.
If their terms aren't clear (the terms he's citing certainly weren't intended for keys, rather Facebook user accounts/information), pay out and fix them.